Plug-in hybrid (PHEV) buyers in Pakistan may have a reason to wait. The draft Auto Policy 2026-31 proposes cutting the general sales tax (GST) on PHEVs from 18% to 9%. On today's verified ex-factory prices, we estimate that could take roughly Rs7.25 lakh to about Rs17 lakh off popular PHEV SUVs. It is still a proposal, though, and several steps remain before any price changes.
What is proposed
The draft sets a tiered sales tax for new-energy vehicles:
| 1 | Battery electric vehicles (BEV): 1% |
|---|---|
| 2 | Range-extended electric vehicles (REEV): 6% |
| 3 | Plug-in hybrids (PHEV): 9% |
Prime Minister Shehbaz Sharif approved the final draft in principle on 20 October, after a committee led by Law Minister Azam Nazeer Tarar endorsed it. According to Express Tribune, the PM himself ordered the BEV, REEV, PHEV tiering. Dawn reported that the PM Office issued no official statement. The draft has since been shared with the IMF.
Estimated PHEV prices at 9% GST
The table below uses current ex-factory prices and assumes the current PHEV rate is 18%, as the draft itself reads it. Expected prices are calculated as current price ÷ 1.18 × 1.09 and rounded to the nearest Rs1,000.
| Model | Current price (Rs) | Expected at 9% (Rs) | Estimated saving (Rs) |
|---|---|---|---|
| Haval H6 PHEV FWD | 10,849,000 | 10,022,000 | 827,000 |
| Haval H6 PHEV Hi4 AWD | 12,895,000 | 11,911,000 | 984,000 |
| MG HS Super Hybrid | 10,199,000 | 9,421,000 | 778,000 |
| Jaecoo J7 SHS-P | 9,999,000 | 9,236,000 | 763,000 |
| Chery Tiggo 7 PHEV | 9,499,000 | 8,774,000 | 725,000 |
| Chery Tiggo 8 PHEV | 10,999,000 | 10,160,000 | 839,000 |
| Chery Tiggo 9 PHEV | 14,299,900 | 13,209,000 | 1,091,000 |
| Tank 500 PHEV | 22,500,000 | 20,784,000 | 1,716,000 |
| Jetour T2 i-DM | 12,795,000 | 11,819,000 | 976,000 |
| Omoda 7 SHS-P | 10,649,000 | 9,837,000 | 812,000 |
These figures are estimates, not announced prices. The simple formula assumes the full sales tax is built into today's price and nothing else changes. In reality, some brands say they are already absorbing tax, Chery and Jaecoo prices are promotional, and the draft also changes customs duty, FED and adds a new levy. Makers are not obliged to pass the cut on to buyers.
Why PHEVs?
The draft ranks vehicles by how much they rely on electricity. Battery EVs get the lowest rate, range-extended EVs come next and plug-in hybrids sit at 9%, while conventional hybrids and petrol cars are set at 18%. A lower rate narrows the price gap between a PHEV and a comparable petrol SUV. The 9% figure also moved during drafting: the first draft had 1%, a September draft had 12.5% and the 20 October committee report settled on 9%.
What is still needed
The PM's approval does not give the policy legal effect. Current tax rates stand until parliament changes them. The remaining steps are:
- IMF consent. Express Tribune describes the rate as subject to the IMF's approval. The IMF had wanted the standard 18% on EVs and other new-energy vehicles, and the government is pushing back.
- Federal cabinet approval. One report says the Economic Coordination Committee must also sign off.
- Parliament. A bill is needed to change the tax rates.
The 25% question
The 18% starting point is the draft's own reading. A September tax change cut the rate on locally made hybrids up to 2,000cc to 18%, but it did not mention PHEVs, and the FBR has not clarified. Some reports say PHEVs currently pay 25%. If that is right, the savings at 9% would be bigger, roughly Rs12 lakh to Rs29 lakh across the same ten models, from about Rs12.2 lakh on the Chery Tiggo 7 PHEV to about Rs28.8 lakh on the Tank 500 PHEV.
Other numbers in the draft
All of these are proposals, and none is in force:
| 1 | Tariffs: CBU and CKD tariffs fall to 15% by FY2030-31 (Dawn). |
|---|---|
| 2 | Automotive Development Levy: zero up to 1,000cc, 2% for 1,001 to 2,000cc and 10% above 2,000cc. It is expected to raise about Rs232bn over five years, with the levy law targeted for December 2026. Reports say it applies to ICE vehicles, and whether it covers PHEVs has not been reported. |
| 3 | EV financing: the financing limit for new-energy vehicles rises from Rs3m to Rs10m, and the tenor from three to five years. |
Thinking of buying a PHEV?
If you are weighing a plug-in hybrid, compare current prices side by side on our car comparison tool, and check the latest prices on our brand pages for Haval, MG, Chery, Jaecoo, Omoda, Tank and Jetour. Would a 9% GST change your next purchase? We will update this page as the policy moves through the IMF, the cabinet and parliament.
